Income Protection Insurance: Who Qualifies and What You Get
Learn how income protection insurance works for self-employed individuals needing to replace lost earnings due to illness or injury.
Income protection insurance is a way to replace your earnings if you are unable to work because of an injury or illness.
Who it's for
This scheme is designed for self-employed individuals who do not have an employer to provide sick pay or income support.
What you get
If you become unable to work due to a medical issue or an accident, this insurance provides you with a replacement income to help cover your living costs while you recover.
What it costs you
You pay for this coverage through regular monthly premiums. Depending on your specific tax situation, these payments may be tax-deductible.
The catch to know
You must choose your waiting period carefully. If you set the waiting period—the time between becoming unable to work and receiving your first payment—too short, your monthly premiums may become too expensive to maintain.
How to apply
- Research different private insurance providers to compare their terms.
- Determine how much monthly income you need to cover your essential costs.
- Decide on a waiting period that balances your savings with your premium costs.
- Contact a provider to set up a policy.